Vol. XXII, No. 160 [ BusinessWorld Online ]
Tuesday, March 17, 2009 | MANILA, PHILIPPINES
THE CITY government of Caloocan is conceding that for now, Gotesco Investments, Inc. remains the owner of the Ever Gotesco Grand Central mall even with a court order allowing the city to take over because of a tax dispute.
Mayor Enrico R. Echiverri said yesterday the mall would remain under the management of Gotesco Investments unless the Caloocan trial court itself implements its recent order handing over the building to the city government.
"We are appealing to the court to implement the order to vacate so that the operations of the mall can be transferred to the city government," he said in an interview.
Teresita C. Marbidi, lawyer for Gotesco Investments, said the city government cannot take over the operations because of an injunction from a Manila court issued last year.
Caloocan claims Gotesco Investments had failed to pay P722.4 million in real property taxes for 23 years since 1986.
Gotesco Investments, meanwhile, claims to have bought the land last year from the city government, and accuses officials of extortion.
But Mr. Echiverri said: "They (Gotesco Investments) have to settle the following with the city government: the payment for the land, the payment of real property tax for the land, and the real property tax for the building," he said.
The mall owner however, only settled the first obligation, the mayor added.
Gotesco Investments was given by the court sheriff until March 12 to vacate the establishment, but the mall owner refused to leave, hiring 150 security guards to resist any takeover.
Gotesco Investments has brought the lower court’s decision before the Court of Appeals, Ms. Marbidi said.
"We will continue fighting in court," she added.
